What is Human Resource Development Fund?
HRDF
HRDF is the Malaysian government body that's mainly responsible for promoting and funding employee training and development programs. Business owners are normally required to contribute a percentage of their payroll to HRDF and these contributions are used to fund various training programs and initiatives for Malaysian workforces.
How do I open a HRDF account?
You can open an account by checking if your company meets the eligible criteria set by HRDF. If your company is eligible, you can then register your company via online or at a HRDF office.
Is my company eligible?
Your registered business would be eligible if it has a valid business registration number and there are at least 10 or more employees working for your company. HRDF mainly focusses on supporting local Malaysian employees so it would be a good idea for your company to employ Malaysian citizens or permanent residents.
Contribution rate to HRDF
The contribution rate to this fund depends on several different criteria such as the sector / industry of your business and the size of your business. Other key notes to know:
- New employers have different rates or incentives for the first few years of operation.
- SMEs (with 50 or fewer employees) typically has a reduced mandatory rate of 0.5% of their monthly payroll.
- Large employers (employing more than 50 employees) are typically required to contribute 1% of their monthly payroll on a mandatory basis to HRDF.
- Some employers may be eligible for waivers from HRDF contributions depending on the type of business and / or nature of employment.
HRDF contributions are investments in our workforce, paving the way for a skilled, competitive, and future-ready team.
More than 500 companies are claiming their HRDF fund
We provide professional guidance and assistance to set up the fund account
How to open a HRDF [ HRDcorp ] account?